Explore how different food and beverage categories in Germany are developing
Germany, known for its love of hearty meals and indulgent treats, is experiencing a fascinating shift in its food and beverage landscape. While Germans remain a nation of food lovers, they are increasingly prioritising health and sustainability. Here, through our 360 research into the German food and beverage market, we explore how these values are influencing purchasing decisions across various categories, from beverages to snacks and meal preparation.
Beverages in the German Market
German consumers want to reduce their alcohol intake; however, alcoholic beverages are still at large within the country. When asked why they want to control how much alcohol they drink, the most common consumer response was “because it is unhealthy.” Some consumers are turning to non-alcoholic beverages as replacements. Beer is the dominant non-alcoholic beverage in Germany, but variety and novelty is helping drive other non-alcoholic beverage purchases. Indulgent is the top claim for non-alcoholic beverage drinkers, chosen as most important by 25 % of consumers. A further 16 % look for low/no/reduced sugar claims, so healthy indulgence should be a target of note for innovators.
In soft drinks, bottled water consumption is on the rise, with more than one in five Germans increasing their intake in the past year. Two in three named its healthy image as a driver of consumption. For other key soft drinks subcategories, such as carbonated beverages, energy drinks, iced coffee and iced tea, the combination of low/no/reduced-sugar claims with indulgence positionings are the most influential claims for consumers …
Fruit Shoot is making a splash this June by entering the squash category with two flavours: Berry Galaxy (Strawberry and Blueberry) and Tropical Jungle (Orange and Mango). With squash making up nearly half of all soft drinks for kids1, Robinsons Fruit Shoot’s latest move means retailers can offer parents a refreshing alternative from a brand they already know and love.
As the number one kids’ drinks brand in the UK2, Fruit Shoot is ideally placed to expand its portfolio into squash. Already a favourite with shoppers, its core range (Orange and Apple & Blackcurrant No Added Sugar Juice Drink) is growing by + 1 %3 (vs last year) and its naturally flavoured water range, Hydro, at + 12.8 %4 (vs last year). The new squash is aimed at children aged between 3 and 8 years old and is all about taking them on a flavour adventure through eye-catching pack designs and delicious flavour combinations.
Ben Parker, Retail Commercial Director at Britvic comments, “We can see a clear demand in the kids category for larger sharing formats, so this was the perfect time to expand Fruit Shoot into a brand-new category. As a well-known and trusted brand, Fruit Shoot is well placed to leverage its strong appeal with kids5 and parents, helping retailers to drive further sales within the category.”
The squashes have already launched into Amazon and Ocado, with a wider launch set for 2025, and has an MRSP of £2.
1Kantar Usage Panel In Home & Carried Out, Britvic Defined Dilutes, Share of Total Soft Drinks, Dilutes share of Total Soft Drinks by Age (Under 10s = kids), 52we 14.04.24 2Nielsen IQ RMS, to WE 13.04.24 MAT TY, Total Coverage GB inc Discounters, Britvic Defined Kids Database, Fruit Shoot, excluding Private Label, Value Sales & CGA by NielsenIQ, 52wks to December 31st 2023, Total Coverage OOH. Fruit Shoot, Value Sales 3NielsenIQ RMS, Total Coverage GB incl discounters, Britvic Defined Kids Database, Sales Value % Chg vs last year, 12 w/e 25.05.24 4NielsenIQ RMS, Total Coverage GB incl discounters, Britvic Defined Kids Database, Sales Value % Chg vs last year, 12 w/e 25.05.24
Latest innovation offers added functionality for consumers with great-tasting formula
BODYARMOR Sports Nutrition announced the launch of its first-ever rapid rehydration beverage, BODYARMOR Flash I.V. Designed to deliver the latest in active hydration and functionality for consumers without compromising on taste, BODYARMOR Flash I.V. is scientifically formulated to ensure the perfect balance of carbohydrates and electrolytes for faster absorption and replenishment.
Developed with the same great-tasting, coconut water base as BODYARMOR Sports Drink, BODYARMOR Flash I.V. offers consumers the ability to refuel, replenish and recover with more electrolytes than the competition, added functionality with Zinc, Vitamins B and C to support a healthy immune system, and the same BODYARMOR promise of no artificial flavours, sweeteners, or dyes.
BODYARMOR Flash I.V. comes in a 20 oz, square bottle and contains over 2200 mg of electrolytes – more than traditional sports drinks – for rapid and sustained rehydration for quick recovery. BODYARMOR Flash I.V. will launch in four great-tasting flavours including Grape, Strawberry Kiwi, Orange, and Tropical Punch. New packaging for BODYARMOR Flash I.V. will feature vibrant flavour colours and highlight key functional benefits to create an eye-catching lineup at retail.
Launching in retail stores regionally this May, BODYARMOR Flash I.V. will be available in-stores nationwide and online via Amazon nationally in 2024. In support of BODYARMOR Sport Nutrition’s first new product offering in more than two years, the brand will feature BODYARMOR Flash I.V. in a variety of social media extensions, OOH media, retail activations, and sampling events in local markets across the US.
PepsiCo is shaking up the cocktail mixer category with the launch of Neon Zebra, a new line of non-alcoholic cocktail mixers with a vibrant personality that offers a shortcut to great-tasting-cocktails in seconds. A modern alternative to complicated cocktail recipes or large format cocktail mixers, each 7.5oz mini-can of Neon Zebra mixed with your spirit of choice, makes two tasty cocktails without the fuss. Made with real juice and no artificial sweeteners, Neon Zebra mixers don’t compromise on taste. These non-alcoholic cocktail mixers come in four flavours: Margarita Mix, Strawberry Daiquiri Mix, Mojito Mix and Whiskey Sour Mix.
As a leader in beverage innovation, PepsiCo is entering the growing cocktail mixers category at a time when today’s homebound consumers are looking for easy-to-make cocktails. In fact, the cocktail mixers category (including total mixers, ginger beer, club soda, and tonics) saw 28 % growth in 2020 and is worth more than $858MM.1 Cocktail culture is taking hold at home, and people are looking for innovations that fit their lifestyle.
“With at-home cocktail consumption on the rise, we saw an opportunity to build and disrupt this fast-growing category with a product that meets consumers’ needs for convenience – to cut out time and mess without compromising on quality and taste,” said Emily Silver, VP of Innovation & Capabilities, PepsiCo Beverages North America. “Neon Zebra adds a new level of personality in the cocktail mixer category with its bold flavours and colours and easy-to-use, recyclable mini-can format. We’re thrilled with this new venture and all of the opportunities to come in the mixology category.”
With Neon Zebra, making classic cocktails is wildly easy, whether you’re an amateur mixologist or just a fan of great cocktails. Simply add 1 can of Neon Zebra + 3 oz. of liquor = 2 #WildlyEasy cocktails. Serve them over ice, top with your favorite garnish (or don’t!) and cheers to cocktail-making made easy.
Neon Zebra cocktail mixers come in four wildly popular flavours:
Margarita Mix: Paired with your favourite tequila, it’s tangy and bold with a flavourful citrus kick of lime.
Strawberry Daiquiri Mix: Sweet & fruity strawberry flavour with a hint of lime. The perfect balance with your favourite rum.
Mojito Mix: Tasty lime and the light sweetness of real sugar makes a refreshing mojito, mixed with your rum of choice.
Whiskey Sour Mix: Sour, but not too tart, for a balanced citrus flavour your whiskey will appreciate.
Neon Zebra launches in sustainable, recyclable packaging via aluminum cans and paperboard 6-packs. Neon Zebra started to roll out in the US across retail and online stores in March for an MSRP of $6.99-$7.99 for six 7.5FL oz cans.
1MULOC, 52 weeks, 2020; includes Total Mixers, Ginger Beer, Club Soda and Tonics
Officially launched and available for purchase online, BRÈINFÚEL (Breinfuel) evolves from coffees, energy drinks, and nootropics to help the brain respond with focus, alertness, and productivity.
Developed by Dr. Gerald Horn, a Lasik surgeon with a background in pharmaceutical science and disruptive drug development, Breinfuel combines highly researched ingredients with an extended release that is designed to support performance and wellbeing.
“Endurance means so many different things to people with various lifestyles, occupations and interests. Yet, the common desired effect is not the jolt offered by traditional caffeinated beverages, but rather sustainable cerebral stamina and high-performance energy,” noted Dr. Horn. “Whether you’re a competitive bodybuilder, a frontline medical worker, or a stay-at-home mom of zoom-schooled children, our mental health is being zapped by today’s challenges and demands. Consumers need a beverage that incorporates more functional benefits that enhance productivity and well-being.”
Breinfuel comes in four palate-pleasing flavours including Thrive Ice, Victory Bliss, Alpha Punch and Limitless Berry. Dr. Horn combined four uniquely differentiated ingredient blends for Breinfuel’s multifaceted effects. The Caffeine Blend, according to Dr. Horn, is “the secret sauce” of Breinfuel, with the best of what’s in coffee without the coffee base. It is derived from green tea and green coffee beans without the toxicity and loss of potency from the roast.
The Fuel Blend includes four grams of low-glycemic sugar, five grams of easily digestible collagen protein, and MCT’s which are a great source of prolonged energy. The Antioxidant blend offers potential added benefits from vitamin C, vitamin E and beet root, all designed to reduce the brain’s known sensitivity to accelerated metabolism. The Brain-Booster blend features zinc, creatine, glycine (from collagen), and L-theanine, all individually shown to support brain health.
“Putting caffeine in water alone can create a toxic jolt to our system, which has contributed to caffeine’s checkered past,” noted Dr. Horn. “Since caffeine is not energy or fuel, but rather a stimulant, it needs to be supported like one. Breinfuel’s attention to these key principles resulted in four targeted blends that, for many, may redefine the caffeine experience.”
The inception of Breinfuel began as part of Dr. Horn’s goal to optimize his nutritional consumption, lifestyle/productivity, and personal health.
“This began as a personal quest to solve the problem of unsupported caffeine in the marketplace, such as in caffeinated drinks with zero calories or high-fructose carbohydrates,” noted Dr. Horn. “Once I and some colleagues began to experience caffeine in a new and better way, I knew it was the right time to bring Breinfuel to market.”
ABOUT BRÈINFÚEL Developed by Dr. Gerald Horn, a Lasik surgeon with a background in pharmaceutical science and disruptive drug development, Breinfuel combines highly researched ingredients with an extended release that is designed to support performance and wellbeing. Breinfuel is sold online and comes in four delicious flavours including Thrive Ice, Victory Bliss, Alpha Punch and Limitless Berry. Each bottle of Breinfuel features a proprietary blend of effective ingredients, including: natural caffeine from GCBE and green tea (along with their extracts), D-ribose sugar, collagen protein, MCT’s, vitamin C, vitamin E, beet root, L-theanine, creatine, and zinc.
PepsiCo, Inc. announced that it has entered into an agreement to acquire Rockstar Energy Beverages (“Rockstar”), the popular energy drink maker, for $3.85 billion.
Ramon Laguarta, PepsiCo Chairman and CEO (Photo: PepsiCo)
“As we work to be more consumer-centric and capitalize on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo’s capabilities to both accelerate Rockstar’s performance and unlock our ability to expand in the category with existing brands such as Mountain Dew,” said PepsiCo Chairman and CEO, Ramon Laguarta. “Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.”
Rockstar, founded in 2001, produces beverages that are designed for those who lead active lifestyles from athletes to rock stars. Rockstar products are available in over 30 flavors at convenience and grocery outlets in over 30 countries. PepsiCo has had a distribution agreement with Rockstar in North America since 2009. In addition to Rockstar, PepsiCo’s energy portfolio includes Mountain Dew’s Kickstart, GameFuel, and AMP.
“We have had a strong partnership with PepsiCo for the last decade, and I’m happy to take that to the next level and join forces as one company,” said Russ Weiner, Rockstar’s founder and creator of the world’s first 16oz energy drink. “PepsiCo shares our competitive spirit and will invest in growing our brand even further. I’m proud of what we built and how we’ve changed the game in the energy space.”
PepsiCo has also entered into an agreement, which will provide approximately $0.7 billion of payments related to future tax benefits associated with the transaction, payable over up to 15 years. PepsiCo does not expect the transaction to be material to its revenue or earnings per share in 2020. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2020.
Centerview Partners LLC acted as financial advisor to PepsiCo. Gibson, Dunn & Crutcher LLP acted as lead counsel to PepsiCo, and Davis Polk & Wardwell LLP as U.S. tax and antitrust counsel. Goldman Sachs & Co. LLC acted as financial advisor to Rockstar, with King & Spalding acting as Rockstar’s legal counsel.
The UK non-alcoholic spirits category has grown to be worth £37m in 2019, up 506 % versus 2014, and is forecast to more than double in size again over the next five years, according to GlobalData, a leading data and analytics company.
David Harris, Consumer Analyst at GlobalData, says: “Younger generations are drinking less, with Gen-Z only strengthening this trend as they reach legal drinking age. This is hardly ground-breaking news. Adult soft drinks, premium juices and a growing range of high-quality non-alcoholic beers are all targeted at this demographic, in addition to older consumers who simply want to moderate their alcohol consumption.”
So what about consumers who don’t want a non-alcoholic beer, but still want an ‘alcohol-alike’ beverage? This may be at a party, on a night out, or at home when everyone else is enjoying their gin and tonics. This is the specific opportunity non-alcoholic spirits are targeting. Where craft beers targeted consumers turned off by mainstream German and US lager brands, non-alcoholic spirits aim to engage consumers who want to feel part of the party, but who don’t want a sore head in the morning.
Harris adds: “Talking of craft beer, what is notable is how the rise of non-alcoholic spirits mirrors the rise of craft beer, arguably the beverage trend of the last decade. With laser targeting of a specific need, from a specific demographic, there are clear similarities between non-alcoholic spirits and craft beer.
“Both target younger legal age consumers. Both target consumers who are either tired of, or have no interest in, the mainstream variant of the offering, and both use flashy, stylized and no-nonsense packaging to engage with their audience.”
Excited with the prospect, major players in spirits are increasingly looking to get involved, with William Grant and Sons launching their Atopia range, Pernod-Ricard launching Celtic Soul, as well as the Diageo-funded Seedlip, which has now expanded out of the UK and into overseas markets.
Retailers also seem to agree that this is a category to watch too, with Tesco, Lidl, Asda, and more major UK retailers all stocking at least one non-alcoholic spirit.
Harris concludes: “While this may not be the next craft beer, the opportunity is certainly there, and both brands and retailers agree that this in an opportunity which is too big to miss.
